25 Sep , 2021 By : monika singh
The ruling brings clarity that such re-classification does not tantamount to reduction of 'equity share capital' per se. The NCLT said there is nothing in the existing law that says that such a conversion is disallowed.
A National Company Law Tribunal (NCLT) has ruled that companies can reclassify their equity shares as preference shares, paving the way for more flexible capital reorganisation for private companies. This means companies can do this to give a structured exit to some of their shareholders going ahead, say industry trackers.
0 Comment